Internet Impact on UNT Traditional Newspaper

Author: Emmanuel O. Nnagbo Master Thesis Spring 2011

Supervisor: Anna Bengtson Uppsala University

Department of Business Studies

Master of Business and Management

Internet Impact on UNT Traditional Newspaper

 Abstract

The aim of this research is to understand the Internet impact on Uppsala Nya Tidning (UNT)
traditional newspaper. By answering the question; has the internet resulted in UNT developing
new products? A case study was selected. The findings indicate that the internet has resulted in
UNT consumers, demanding quick, free, and user-generated news. The fact that the newspaper is
presently unable to accommodate these different needs have made the consumers discard the
paper, thus causing a decrease in UNT newspaper readership. This, however, resulted in UNT
developing new products (e.g., Free online reading, tabloid newspaper, and multimedia
portfolio).

Keywords: Newspaper, internet, online, consumer

Internet Impact on UNT Traditional Newspaper

 Table of contents

1 Introduction ......................................................................................................................................... 5
1.2 Purpose ......................................................................................................................................... 6
1.3 Research Question ......................................................................................................................... 6
2. Theoretical Framework ........................................................................................................................ 6
2.1 New Product Development ............................................................................................................ 6
2.1.2 Categories of New Product ...................................................................................................... 7
2.1.3 Technology as a Driver of New Product Development ............................................................. 8
2.2 Internet Impact on Traditional Newspaper ................................................................................. 9
3 Method .............................................................................................................................................. 11
3.1 Research Approach ...................................................................................................................... 11
3.2 Case Study Strategy ..................................................................................................................... 12
3.3 Sample Selection.......................................................................................................................... 12
3.4 Data Collection ............................................................................................................................ 13
Table 1 - Interview with UNT ............................................................................................................ 15
3.5 Operationalization ....................................................................................................................... 15
4 Empirical findings ............................................................................................................................... 16

Internet Impact on UNT Traditional Newspaper

 4.1 UNT Traditional Newspaper Consumption ................................................................................... 16
4.2 New Products Developed by UNT................................................................................................. 17
4.2.1 UNT Online Newspaper ......................................................................................................... 17
4.2.2 UNT Free Newspaper ............................................................................................................ 18
4.2.3 UNT Tabloid Newspaper........................................................................................................ 18
4.2.4 UNT Multimedia Portfolio ..................................................................................................... 19
5 Analyses ............................................................................................................................................. 20
5.1 Internet and UNT New Products Development............................................................................. 20
6 Conclusion .......................................................................................................................................... 23
7 Implications for Practitioners .............................................................................................................. 23
8 Limitation and Suggestion for Future Research ................................................................................... 24
List of References .................................................................................................................................. 24
Appendix 1 ............................................................................................................................................ 30

Internet Impact on UNT Traditional Newspaper

1 Introduction

Newspaper companies around the globe are changing their mode of producing and distributing
news (Clemons & Lang 2003). The changes are due to a continuous decline in newspaper
circulation, readership, and advertisers. The decline is as a result of changing readers
consumption, which according to Sternvik et al, (2008) & Fortunati & Sarrica (2010) is caused
by the Internet. Internet has resulted in newspaper consumers developing the habit of wanting
interne news, free news, quick news and interactivity i.e news blog and user-generated content
(Freer, 2007 & Sternvik et al, 2008). The inability of traditional newspapers to provide all these
emerging perks has prompted a prediction that many newspaper companies will be forced to
change in order to survive; adapting the style, the content, and the design of the newspaper as
well as adopting new technology, which empower consumers involvement.

New product development is viewed as a key for responding to declining product consumption
caused by consumer changing needs (Nystrom, 1985). It is defined as a modification of existing
product and an introduction of a new product that meets contemporary needs (Foxall, 1998 &
Leonard, 1998). It could be the creation of products with additional or different characteristics
that offer new or additional benefits to consumers.

Uppsala Nya Tidning (UNT) is a Swedish regional newspaper mainly known for news and
advertising publications in Uppsala region. The UNT traditional newspaper has existed since
1890. Given that the internet has changed the papers consumer base, integrating new product
development into the UNT traditional newspaper would worth it, to see if new products were
developed. The rationale for focusing on UNT traditional newspaper is because of the papers
extraordinarily strong reputation in terms of brand and credibility (Hall, 2011).

Internet Impact on UNT Traditional Newspaper

1.2 Purpose

This paper aims to understand internet impact on UNT traditional newspaper. Fulfilling this aim
demands to answer the following question:

1.3 Research Question

Has the internet resulted in UNT developing new products ?

2. Theoretical Framework

To provide a solution to the research question, this chapter presents theories of new product
development, categories of new product development, and their driversmost importantly
technology advancement, followed by impact of internet on traditional newspaper.

2.1 New Product Development

New product development is critical because it is becoming the nexus of competitive advantage
(Brown & Eisenhardt, 1995). The most crucial determinant of success is product advantages.
That is the intrinsic value of a product, which includes the unique benefits to customers: high
quality, attractive cost, and innovative features (Brown & Eisenhardt, 1995). Products that
contain these advantages is more likely to win. In contrast, products that are lacking these
advantages are likely to lose. Thus, new product development is a potential source of competitive
advantage (Porter, 1991). It is a critical means by which members of an organization diversify,
adapt, and reinvent their offering to match to evolving market and technical conditions. The
underlying rationale for the product is that technical and market changes can never be fully
controlled, so proactive product development can be effective in influencing and adapt to this
situation.

New product development is the modification of an existing product and the introduction of a
new product; it is all about making core offerings more efficient, more useful, and more

Internet Impact on UNT Traditional Newspaper

attractive in terms of the current users needs (Nash, 1936). A product is new when certain
features are either removed or added to an existing product (Grimme et al, 2002). It could also be
introducing a product that a company has never made or sold before, but others might have
(Cooper, 2001). It could be reforming or repackaging the size of a core product and introducing a
more convenient size of the product (Hollensen, 2003).

The firm developed various sizes of the existing product in order to meet up with consumers
varying needs (Peter & Olson, 2008). It can also be seen as changing the color or appearance of
the core product. Furthermore, it could be repositioning existing product by increasing or
decreasing some features in order to meet consumer perception of high quality and low price
(Bodin, 2000). It could be differentiating existing offerings by adding trivial attributes (Sin,
2009). A trivial attribute is defined as an attribute offered by a product that is distinct from its
competitor for which consumers have a prior preference, but which provides no significant
performance benefit (Sin, 2009).

2.1.2 Categories of New Product

Cooper (2001) identified several types of new product that a firm can develop. It includes a new
product line, adding to an existing product line, improvements and revisions to existing products,
repositioning, and cost reduction.

New product line: These products, according to Cooper, are not new to the marketplace, but they
are new to a company. These products enable a company to enter established market for the first
time. The author gave the example of Canon. Here, he says that Cannon was not the first to
introduce an office laser printer, rather it was Hewlett-Packard who did it. However, when
Cannon did launch its version, it was clearly not innovation; rather it represented a new product
line for Cannon.

Adding to existing product lines: These are new items to the firm says Cooper, but they fit within
an existing product line that firm already produces. They may also represent a fairly new product
to market place. Example is Hewlett-Packards introduction of LaserJet 7p, a smaller and
considerably less expensive version of its laser printer that is suitable for home computers. The

Internet Impact on UNT Traditional Newspaper

printer is a new item within the LaserJet line and its small size and low cost made it new to the
market.

Improvements and revisions to existing products: In this case, a newly lunch product is seen not
to be so new to a company. Rather they are replacements of existing products in a firm's product
line. They offer improved performance or greater perceived value over the old product.

Repositioning: These are essentially new applications for existing products and often involve
retargeting a mature product to a new market segment or for different application.

2.1.3 Technology as a Driver of New Product Development

Technology is making usage and knowledge of tools, techniques and systems to solve a problem
and resolution. It affects human ability to control and adapt to its natural environment. The
worlds base of technology and know-how has increased at an exponential rate. For instance,
various separated technologies of different systems have emerged towards similar goals. A
typical example of this technology is the internet, which is the worldwide interconnection of
computers and computer networks that facilitate the sharing and exchange of information among
users. It can be accessed anywhere at any time.

However, technology advances are making it possible, for solutions and products not even
demanded of the decade ago to be demanded in today. It is also seen as one the factors
responsible for changing consumer demand. Consumer needs includes unique wants, wishes,
desires, and emotional attachment towards a product (Cooper 2001).

One of the results of the new market pace of technological change coupled with changing market
needs and demands has been shorter product life cycles. Products no longer have a life after five
to ten years, or sometimes even in months it is superseded by competitive entry, rendering the
product obsoletely and necessitating a new product. Its use goes down. In some cases, consumers
discontinue the product consumption. Maintainig this product consumption demand, that
companies must add new features and find new users, reduce costs, and continue to offer it to
loyal consumers or discontinue the product.

Internet Impact on UNT Traditional Newspaper

Internet, which is viewed as one of the technology advancements that have raised consumer
curiosity and awareness. Bodin (2000) claimed that this curiosity has resulted in consumers
seeking new features from existing products, thus leading to consumer changing needs and
declining product consumption. It has also resulted in consumer varying needs (Clark, 1995).
One typical example of consumer changing needs that could result to decline in product
consumption is convenience. Convenient consumers want easier product (Chung & Hsu, 2010).
The inability of existing products to offer convenience can result to declining product
consumption. In reacting to this situation, Holtzman, (2011) & Patrick (2000) encourage
companies to identify emerging and potential features and benefits that consumer wanted, also
used them to develop a new product. These companies are persuaded to repackaged and
produced shorter version of the existing offering.

Since new product development is view as a way of managing, adapting, coping to effects of
changing consumer and decrease in product consumption cause by technology advances. It will
mean that technology advancement such as internet development can change consumers need,
results to decline in consumption and triggers new product development.

2.2 Internet Impact on Traditional Newspaper

Never before has the newspaper industry been affected the way that it is today. The introduction
of internet in the mid-1990s has affected and changed the habit of reading newspapers. The
major change is seen in the younger population who was raised with internet and preferred the
internet environment (Howe, 2006).

In this newly emerged market, the consumer wants to have faster updates or brief news that is
easily accessible as well as free (Sternvik et al, 2008). Furthermore, the newspaper consumers
want an offering of news blogs, text alerts, news updates, pod casts and user-generated content
at a rapid pace, in more accessible formats (Freer, 2007). Another trend observed in the
newspaper industry is that readers do come into contact with daily newspapers. Instead of
reading them, they ignore them, knowing that they can read it freely online Reading news online
has changed consumers to abandon reading printed newspaper. This has resulted in declining
circulation of printed newspapers.

Internet Impact on UNT Traditional Newspaper

In responding to the situation, newspaper companies, according to Bergstrom (2003), extend
traditional newspaper contents into web platform. By contents, she meant local news, accidents,
crimes, family news, radio and TV materials, domestic politics and culture, economy, sports,
advertisement, international news, entertainment articles, letters to the editor, editorial, and
comments. The difference between an online newspaper and a traditional one is that the content
is digitally produced (Christopher, 2008).

On the online newspaper, the users have the chance to interact with the news provider,
immediately sending comments on articles. Consumers and producers become news providers
(Thurman& Myllylahti, 2009). A blog was provided, which is a feedback system where
individuals publish personal news. Consumers become content-providers in their own right. The
traditional newspaper distributes news by relying on journalist while the web newspaper allows
consumers as individuals or social networks, to produce and distribute on the basis of their
opinion (Thurman& Myllylahti, 2009).

Beside online newspaper, newspaper companies responded to consumer wanting free news by
come up with a free daily newspaper (Wadbring, 2003). Free daily is a newspaper that comes in
smaller size (tabloid) and shorter texts (Sternvik et al, 2008). Unlike traditional newspapers, it
contains only few stories (Wadbring, 2003). The readership consists of mainly news bulletins
and short articles. Unlike the traditional paper, illustrations are relatively rare; it does not feature
editorial, debate, or specialized pages. It is distributed via public transportation system. The
traditional paper was modified to a paper with brief news summaries that could be read in a
shorter time (Wadbring, 2003).

Naturally, traditional newspapers come in broadsheet form. The effort to adapt to reader needs
and specifications have in the past years led to structural change of newspaper from broadsheet
to tabloid format (Sternvik et al, 2008). The need for adapting to readers needs has also resulted
in newspaper providers switching to uniformly-sized newspapers, modification of newspaper
structure, and changes to content and layout (Ibid). As consumers, especially young people found
online newspaper more appealing, their habit of reading printed newspaper has decreased and
switched to internet news. In responding to this challenge, newspaper companies, according
Sternvik (2008), have modified the newspaper and introduced new newspapers with a reduced

Internet Impact on UNT Traditional Newspaper

number of pages and larger pictures. The purpose of resizing the core product is not only to make
their product appealing, but also to enable them charge lower prices.

Besides restructuring of traditional newspaper and introduction new newspaper, newspaper

companies have also reacted to decline in readership by embracing multimedia portfolio (Deuze,
2007). That is developing television and radio station as well as mobile phone newspaper
(Graham & Smart, 2010).

3 Method

This chapter discusses the research strategy used to answer the research questions and reflected
on why this strategy was employed: why the paper chose to research on UNT. It specifies the
sources from which the paper collected data.

3.1 Research Approach

There are different scientific approaches, such as induction and deduction that can be adopted in
understanding how theory works in reality. These two approaches can be used separately but also
in combination. A deductive approach means that a concept or framework is developed from
theory. This hypothesis is operationalized and tested in reality. The fact that deductive research is
based on existing theory imposes a risk that a researcher might become somewhat narrow and
would be diverted from new discoveries (Saunders et al, 2009). Inductive research implies
collecting qualitative data and is characterized by a more flexible structure. An induction mostly
focuses on understanding the context of a research phenomena and an apprehension of the
underlying meaning that humans assign to it.

This research is approached by a combination of both induction and deduction. In the study of
UNT, the research has moved between the empirical interviews and theory. The empirical
interview made to be possible to gain preconceptions of UNTs current situation, which lead to
understanding the existing problems. In order to investigate the problem, it continued to research
theories that were applicable for further empirical observations. This increased the understanding

Internet Impact on UNT Traditional Newspaper

for both the empirical study and theoretical dimensions. By continuously relating theory and
empirical observation, it was possible to prevent narrowness during the research process. The
paper aimed to confirm existing theory and not to discover new one, by combining both
approaches,

3.2 Case Study Strategy

According to Saunders et al, (2003) & Yin (1998), case strategy is used when the research
demands to use multiple sources of evidence from restricted number of people. When a research
answers what and how questions. This papers aim was achieved by interviewing staff members
that have knowledge about UNT traditional newspaper, its circulation, and redevelopment over
time (see table 1). A case study method was chosen because it helps get rich, qualitative,
information that is particularly suitable for the investigation. Besides, this strategy allows using
data from interviews and previous researchers.

Another reason for approaching this study with case study is because the research on internet
impact on UNT traditional newspaper is scarce. So case strategy made to be possible to
generated unavailable data needed for contributing to this body of research. One of the
implications of approaching this research with case strategy is that it could be inadequate when it
comes to generalization because the selected respondents represents certain groups of UNT
employee (Saunders et al, 2003). In order to avoid this bias, secondary data from previous
research, which Yin (1994) viewed as relevant for case studies were used. The fact that these
data were specifically collected for a purposes was taken into consideration.

3.3 Sample Selection

According to Saunders et al, (2003) choice of case selection is dependent upon research
questions and objectives. The research question and objective of this paper was specifically
directed towards organization product. Owing to restriction of time and access, interviews with
the entire UNT staff was not possible. Based on this, the study judgmentally selected managers
in various UNT departments (see table 1). The managing director (MD) and marketing managers
were selected since the objective of this paper is concerned to mostly the product.

Internet Impact on UNT Traditional Newspaper

The criterion for selecting the managers was first to identify the departmental managers dealing
with product-related decisions. This was revealed by searching the departmental managers and
directors with similar tasks and experience who had approximately 5 to 10 years experience.
Among these departmental managers, managers that are similar in terms of experience and their
role in meeting the entire organizations goals were selected. For instance, the managing director
(MD) was selected because of experience, the role played in managing the entire organization,
the consumers, developing, implementing and reviewing strategy. The marketing manager was
selected because of the significant role played in product development (Workman, 1993). This
included Research and reporting external opportunities, understanding current and potential
consumer needs, conceptualizing product development, understanding the market dynamism,
changing taste, and preference of consumer.

These selected managers are believed to have recognized new product development as a strategy
for adapting to consumer changing needs. Furthermore, it is believed that since these managers
operate locally, they will be aware of local environmental dynamism and UNT reactions to
internet. The selection of the managers was done with the aim of gaining overall picture of the
marketings departmental role played in shaping consumer changing need. The first respondent
was contacted by phone and email. It was after the interview that this respondent introduced the
other manager, who agreed to participate in the research.

3.4 Data Collection

Several types of interviews were conducted for gathering valid and reliable data. This is because
interviews are essential sources for case study information (Yin, 1994). In order to generate the
research objectives of this paper, two unstructured face-to-face interview were first conducted
with UNT respondents Saunders et al (2003). The purpose of the interviews was to get an in-
depth idea of the current issues facing the newspaper and its readership. Two semi-structured
interviews were conducted after the papers objective was established. The themes and questions
covered for both interviews were listed in Appendix 1. Additional questions that were not
initially set on the interview guide were emerged and asked. This is done in order to get a better
understanding of the respondents answers.

Internet Impact on UNT Traditional Newspaper

The reasons for both semi-structured and unstructured interviews are because this research was
based on qualitative method (Bryman & Dell (2003). Semi-structured and in-depth interviews
were also chosen because they made it possible to collect unavailable data used to discuss,
reveal, and understand the research questions. These types of interview methods were also
chosen because they helped in finding out and getting new insight on this area of research.
Furthermore, they provide an opportunity to probe respondents answers that is interrupting and
asking respondents to explain what they meant.

These interview types were also chosen because they may lead to the discussion into areas that
the paper had not previously considered, but are significant for understanding and addressing the
objectives. Lastly semi and structured interviews were chosen because they provide a high-
response rate when compared to a questionnaire. The interview (Appendix 1) took place with
purposively selected member from the marketing and distribution department. Open questions
designed from theoretical consideration were used in order to allow respondents to express their
opinion. The responses to the questions were used as a basis for further inquiry. A question that
requested an answer significant to the research topic was also used. More flexibility and
opportunity to elaborate on the answer were provided. The interviews lasted between 20 to 60
minutes and were conducted in English language. As a means to control bias and produce
reliable data for analysis, the interviews were recorded in order to allow the interviewer to
maintain concentration and focus on taking notes and asking a question.

Internet Impact on UNT Traditional Newspaper

Interviewee Job title Interview types Interview means Interview date
Hans Lindberg Managing Unstructured Face- to- face 11-01-20
Director 0:22:45
Marketing Unstructured Face-to face 11-01-24
Hall Andreas manager 0: 20:50
Managing Semi- Structured Face -to- face 11-03-25
Hans Lindberg Director 1: 24: 43

Hall Andreas Marketing Semi- Structured Face-to-face 11-03-23

Manager 0: 33: 57

Table 1 - Interview with UNT

3.5 Operationalization

The theoretical variables that are discussed in the paper are consumer changing needs and new
product development. In order to translate these variables into researchable data, the variables
were operationalized into measurable indicators (Vause, 2001). For example, Consumer
changing need was measured by following indicators; consumer wanting internet, quick, free and
user-generated news. New product was translated as alternative newspaper beside the traditional
newspaper. From theoretical consideration, the traditional newspaper is viewed as existing
product and whiles the alternative newspaper is view as a new product. New product is defined
as modification of existing offering. That is adding or removal certain features of a product. The
way to know if the traditional newspaper is modified is by comparing the difference between the
alternative product produced and the traditional newspaper. However, this helps to get insight on
new features that UNT added to the new offering as well as the features that were removed.

Internet Impact on UNT Traditional Newspaper

4 Empirical findings

This chapter provides a presentation of data that can be used to analyze and conclude the impact
of internet on UNT newspaper. The data presented here includes findings on UNT newspaper
consumption with internet usage, and how it has responded to these challenges. The questions
used to collect the data can be found on the interview guide in appendix 1

4.1 UNT Traditional Newspaper Consumption

UNT newspaper is a daily newspaper that is published and distributed to Uppsala residents every
morning. According to Hall (2011), the position that UNT newspaper currently occupies on the
market today, have been weaker now than 20 years ago. In 2003, UNT had 60,000 people
reading the newspaper and 49,900 readers in 2010 (NE, 2011). The introduction of internet in
Sweden, in the mid-1990s, has made UNT consumer wanting quick, free and user-generated
internet news. Thus, making it difficult for the traditional newspaper to attract readers (Lindberg,
2011). These consumers like to be part of the flow, make comments, be involved, add things,
have two-way communication and quick news, but do not want to pay for it (Lindberg, 2011).
UNT finds it extremely hard to be gotten breaking news to the paper, this is because the latest
news are placed on the internet before is printed on paper. The effect that readers wanting
internet news had on the newspaper is that it caused the decline in traditional newspaper
readership (Lindberg & Hall, 2011).

UNT considered this as a possible reason for the decline in newspaper readership (Lindberg
2011). Consumers cultivating the habit of reading unpaid and quick news online had made UNT
newspaper readership go down (Hall, 2011). The research by Sternvik et al (2008) conducted on
Swedish newspaper consumption shows that total consumption of Swedish newspapers in
general has gradually declined in mid 1990s. At the same time that reading printed paper was
declining, Swedish news consumption via the internet was increasing from 7 to over 40 percent
(Sternvik et al 2008). The increase is also observed in the private TV and radio channels.
Sternvik attributed the regular weakening of Swedish newspapers readership to age factors where
the population especially the young generation has been socialized into an internet society.

Internet Impact on UNT Traditional Newspaper

4.2 New Products Developed by UNT
4.2.1 UNT Online Newspaper

UNT responses to consumers developing the habit of wanting to have their news consumed on
the internet is according to Lindberg (2011) to have several channels to broadcast. One of the
channels is to have online newspaper (UNT.se), a digital platform, which offers quick news. One
of the respondents explains that ever since UNT adopted online news that they have never had so
many readers as they have right now (Hall, 2011).

According to Lindberg (2011) in the early days, UNT online newspaper was more of copy of the
main newspaper contents to the internet. The contents include local news, family news, radio
and TV materials, domestic polities and culture, economy, sports, advertisement, articles, letter
to the editor, editorial and comments. But nowadays the journalistic approach has changed.
Different language is also used on the internet. As the respondents pointed out, another
difference between UNT online newspaper and internet newspaper is that the readers has the
possibilities to add pictures and other information. The online newspaper also encourages
interactivity. Readers have the possibility to make comments, and click on a link to get more
picture or idea. The newspaper is more of journalist analysis and some deeper comments on the
contents of the paper. While the internet is shorter or more actual, less reading time and not as
deep analysis as it is in the paper. The internet news is constantly updated.

The online newspaper as pointed out by UNT respondents contains advancement of user
generated content (Lindberg, 2011). Traditionally UNT consumers have been writing and
sending a letter about their opinions. In the online newspaper, they have the possibilities to
participate, commenting and debating on articles. The problems with the comments are that they
have to be clear so is possible to be publishing; they cannot be sadistic, racist, and antidemocratic
and so on. The comments have to transcribed and keep to a certain level. This according to the
respondent is more difficult and harder now with the internet, which made it possible for value to
be producing and consume simultaneously. In order to solve this, UNT developed advance
program that scan and monitor these comments. UNT attracted readers with the interactivity
program.

Internet Impact on UNT Traditional Newspaper

4.2.2 UNT Free Newspaper

According to Lindberg (2011), the UNT response to consumer needs has been to provide
different free newspaper in different communities surrounding Uppsala. They include; Traffic
papers, free 18 minutes paper, UNT real estate, UNT city, UNT lifestyle magazine, UNT
business, and motor (Hall, 2011). This UNT sees a strategic way to attract new readers, which
cannot afford to buy and read the newspaper. As Hall says, If young consumers read this, then
they will have a strong desire for the main newspaper later in their life, because they will be used
to our brand and raised with it. These free newspapers have younger approach also is distributed
instantly for free in the city. With more than 60,000 people each day reading these free
newspapers, UNT can increase the decline in the total number of eye balls (Hall, 2011).

The differences between paid newspaper and the free one according to the respondents is that, is
light, when it come to content it provide highlights of the news, just like internet one. It has
bigger picture, few texts, and more appealing, trendier. It is shorter articles also the languages are
target towards younger public, they dont use complicated words, it can be read shortly on the
bus, train or you can take it on your way home or work. They have a few articles of their own,
reuse and rewrite articles from the main newspaper in a lighter way.

4.2.3 UNT Tabloid Newspaper

According to Lindberg (2011) back in the eighteenth century, the size, the content and format of
the UNT newspaper were not the same as they are now; it has changed quite drastically since
2004, now it is tabloid. Earlier the paper was a broadsheet, which is extraordinarily big also it
was more boring, not so modern and stylish. It has been a paper for 19 centuries and with old
traditions. Now it tries to have more modern features and format. According to Lindberg, if UNT
had not changed their approach, the decline in newspaper readership should have been much
more. But still significant change in the society is the internet and free information. Major
changes, according to the respondent, cannot not be stopped, maybe we can slow them up a
bit.

Internet Impact on UNT Traditional Newspaper

4.2.4 UNT Multimedia Portfolio

UNT considers the weakness of newspapers as a big thing (Hall, 2011). They stopped being a
newspaper and became a media house with lots of different media in the same house. According
to this respondent, if you come to UNT today, we have the 24 UNT TV, two radio stations and
mobile news and today we are more strong company than we were before (Hall, 2011) Before
UNT only had one leg, but today they have 15 legs to stand on (Hall, 2011). The TV station
introduced in 2010 is a crucial part of the media household of UNT today. The purpose of the
media portfolio is to reach people who find it hard to read and/or are unwilling to pay for the
newspaper; they can see, hear it for free on TV and radio station. According to Hall (2011) our
brand should be part of your life if you live in Uppsala.

The purpose of multimedia is to connect to customers irrespective of where they are (Hall,
2011). If they do not read the newspaper, they can read the free sheet, get news on mobile, listen
on the radio, and watch on TV. By so doing, UNT can connect one or more of their products to
everyone living in Uppsala every day. For example if something happen say political issue, the
journalist cover it up, UNT invite people on the TV to have a discussion on it. They refer it
quickly on the web, radio and mobile phone (Lindberg, 2011).

The news on the mobile phone, newspaper, television and radio is the same value distributed in a
different way. So the only thing, that changes are the means of distributing the news, but same
offering. UNT refers this as channel strategy. According to the UNT respondent, if something
happen say political issue, the journalist cover it up, UNT invite people on the TV to have a
discussion on it. They refer it quickly on the web, radio and mobile phone.

According to Lindberg (2011), if UNT have a lot of readers consuming and using different
channels, its can have a higher income from advertisements. With TV, radio, event, fresh sheet,
mobile, UNT can connect to changing readers needs. If the consumers dont read the traditional
newspaper they can read the free sheet, get news on mobile, listen on the radio and watch on TV.
Internet has made UNT have lots of media. These lots of media they see as an adaptation the
internet and not to control the internet (Hall, 2011).

Internet Impact on UNT Traditional Newspaper

5 Analyses

This chapter includes an analysis of the theoretical framework and connects it to the fragments
of the empirical findings. These analyses contribute to the conclusion that answers the research
question.

5.1 Internet and UNT New Products Development

It has been established that technology advancement; such as internet evolution can change
consumers needs, results to decline in consumption and triggers new product development
(Cooper 2001). UNT has noticed that the internet, which Cooper view as one of the technology
advancement, has changed and resulted to consumers developing the habit of wanting internet,
free, quick, blog and user-generated news. However, results in declining in newspaper
readership. New product development is viewed as one of the ways a company can respond to a
situation where technology advancement has changed consumer needs and resulted in a decline,
in product consumption (Holtzman, 2011). In responding to declined in traditional newspaper
readership; UNT developed new products (Patrick, 2000). That is UNT has developed online
newspaper, free newspaper, tabloid newspaper and Mobile newspaper, as well as UNT TV and
radio stations (Bergstrom, 2003; Wadbring, 2003 & Sternvik et al, 2008).

New product development is a critical means by which members of an organization adapt their
offering to match to evolving market and technical conditions (Brown & Eisenhardt, 1995).
When it comes, adapting to the internet which resulted to readers wanting new technical needs.
UNT copied traditional newspaper content to internet (Lindberg, 2011). That is they modify
traditional newspaper and introduce new offering that match current needs (Nash, 1935). The
paper was replaced with digital format. That is instead of printing news on a paper; UNT
digitized it. Beside, new applications such as a blog, which encourage user-generated content,
were developed. The current needs that consumers are demanding, namely the possibility to
interact with the news provider, immediately sending comments on articles were also

Internet Impact on UNT Traditional Newspaper

incorporated. New applications, which make it possible for the consumer to be part of the flow,
add pictures and information were added (Grimme et al, 2002). Complicated language was
replaced with lighter one.

New product development is defined as modification of existing product and an introduction of a

new product that meets new needs (Foxall, 1998 & Leonard, 1998). The firm developed multiple
sizes of the existing product in order to meet up with consumers needs. When it comes to
responding to the internet, which resulted to UNT traditional readers emerging need of wanting
free news, UNT adjust the traditional newspaper by removing the attributes that the consumer
doesnt want and adding the needed features (Hollensen, 2003). That is they removed the
features that were inconvenience to the readers and launched lighter version of a paper (Chung &
Hsu, 2010). The features that were added include; smaller format, few stories, while the one that
were removed includes deeper analysis of the news, editorial page and etc. The new version of
the paper provides highlights of the news just like internet information.

The traditional newspaper contents were separated. I.e. Instead of having many contents in a
single paper, UNT separated them into a small paper with one content. For example, instead of
having local news, sports and advertisement contents in one paper. UNT has real estate content
in a single paper (Hall, 2011). The pictures were enlarged, and detail analysis of news were
replaced with news highlights. The small size and free of this newspaper make to be somehow
new to the market.

New product development is all about making core offerings more efficient, more useful, and
more attractive in terms of the current consumers needs (Nash, 1936). In terms of readers
wanting attractive newspaper as it is presented on the internet. UNT react to this by changing the
structure, the content, layout and writing style of the traditional newspaper and introduce
uniformly-sized and appealing paper known as a tabloid newspaper. The paper has reduced
number of pages and larger quality picture, which attract readers. Reducing the size and the
pages of the paper enables UNT to charge lower prices and react to consumer unwillingness to
read the traditional newspaper.

Internet Impact on UNT Traditional Newspaper

New product development is used in reacting to convenience consumers (Bodin, 2000). UNT has
observed that traditional newspaper readers wanting convenient and quick availability of news,
thus finding it hard to read and are unwilling to pay for the traditional newspaper. In order to
connect with these consumers irrespective of where they are, UNT developed new products
known as UNT mobile phone newspaper, TV and radio station (Sternvik et al, 2008). By so
doing, the consumers will not have an excuse for not consuming UNT traditional offering. What
UNT did was to benchmarks TV and radio station, adapted the traditional newspaper content into
audio and visual format.

Internet Impact on UNT Traditional Newspaper

6 Conclusion

The internet has resulted in UNTs development of new products. Since the traditional
newspaper was modified, multimedia portfolio, online, free, and tabloid newspaper were
developed in responds to the internet, which changed readers needs and resulted to the
abandoning of the traditional newspaper consumption. Such needs includes free, quick and user-
generated news.

It is not the question of abandoning the news offering because the consumer is refraining from
consuming this product. But what this study shows is that some of the traditional newspaper
features were removed, and some features that consumer demanded were added. It also shows
that the traditional newspaper was repositioned and that a new application, which encourages
interactivity, was introduced. It also shows that new offerings, which are new to the market, but
offer the same value as traditional newsapaper was introduced. The study shows that UNT
traditional newspaper structure and format was improved and revised as a result of internet
challenges. It also shows that the internet has made UNT start benchmarking other companies
like TV and radio companies. It also shows that UNT reacted to internet challenges by adopting
Franklins (2008) suggestion to change, adapt the style, the content and design of the traditional
newspaper, as well as adoption technologies, which encourage interactivity.

7 Implications for Practitioners

The finding shows that the internet is such a strong factor in the consumer environment that
cannot be controlled. It also shows that an attempt to control the internet might result in the
company modifying and diversifying its core offering. Based on this, managers should be aware
of the fact that environmental stimulus like the internet can have an impact on customer decision
making irrespective of how strong the product, thus they should not separate consumer changing
environment from decision making. Managers should note that whatever choices they may make

Internet Impact on UNT Traditional Newspaper

when it come to responding to a decline in product consumption, they should be aware that new
product development proves to be one of the successful ways of reacting to this situation.

8 Limitation and Suggestion for Future Research

It is hard to generalize the research findings due to the small number of sampled employees
working at UNT. The perception of these people may not reflect the view of the entire
organization. Therefore, it will be intriguing to interview each and everyone working in UNT
and see if the same result will be achieved. Due to time factors, the paper only interviewed the
company and not the consumers. The research was limited to traditional newspaper offering. The
research was also limited to the news publication instead of both news and advertising which are
two parts of the UNT main offering. The questions raised by these limitations could be answered
by future researchers.

List of References

Aaker .D.A 1996. Building a strong brand Simon and Schuster Australia

Ambler, T & Style, C (1997) Brand development versus new product development: Towards a
process model of extension decision. Journal of product and brand management Vol. 6 No.1,
PP 13-26

Berte, K & Els D.B (2008) Newspaper go for advertising! Challenges and opportunities in a
changing media environment. Journalism studies, Vol.9, No 5, 2008 pp 692-703

Bergstrm, (2005) News consumption practices on the Internet 1998 to 2003. Department of
journalism and mass communication, Gteborg University

Bodin Jan (2000) Perpetual product development; a study of small technology driven firms.
Department of business administration, Ume University Sweden

Internet Impact on UNT Traditional Newspaper

Boisvert J & Burton S (2011) Towards a better understanding of factors affecting transfer of
brand association. Journal of consumer marketing Vol. 28 No 7 PP 57-66

Brown Bruce (2010) why innovation matters. Research technology management Nov-Dec, PP
18-23

Brown Marisa, Leavitt Paige & Wright Steve (2004) new product development: A guide for your
journey to best practice processes. American productivity and quality centre publication. United
States of America

Byron M. Sharp (2003) Managing brand extension. Journal of consumer marketing, Vol. 10 No.3
pp 11-17

Chung Yi-Chang & Hsu Yao-Wen (2010) Research on the correlation between design for six
sigma implementation activity levels, new product development performance in Taiwans high-
tech manufacturer. Total quality management Vol. 21, No 6 June 2010, PP 603-616

Christopher L .C (2008) the strategy of change in newspapers. The Seybold report Vol. 8 No. 15

Clark Jon (1995) Managing innovation and change; People, technology and strategy. Sage
publication London

Clemons E. Erik (2008) How information changes consumer behavior and how consumer
behavior determines corporate strategy. Journal of management information systems. Vol. 25 No,
2 PP 13-40

Cooper G. Robert(2001) Winning at new products: Accelerating the process from idea to lunch.
Preseus publishing Cambridge

Deborah, Caldwell (2011) Revenue generation on mobile devices. The magazine management
Vol. 40 No 1

Delvin D; Birtwistle G & Macedo N (2003) Food retail positioning strategy: A mean-end chain
analysis. British food journal Vol.106.No 9, pp 653-670

Internet Impact on UNT Traditional Newspaper

Domingo D, Quandt T, Heinonen A, Paulussen S; Singer B. J and Vujnovic (2008) Participatory
journalism practices in the media and beyond: An international comparative study of initiatives
in online newspapers. Journalism practice, Vol .2, No 3

Foxall R Gordon (1993) Consumer behavior as evolutionary process. European Journal of

marketing. Vol. 27 No, 8 PP 46-57

Fuller J, Muhlbacher H, Matzler K & Jawecki G (2009) Consumer empower through internet
based co-creation. Journal of management information system Vol. 26, No.3.PP 71-102

Fortunati L & Sarrica M (2010) the future of press: Insights from the sociotechnical approach.
The information society, Vol. 26 PP 247-255

Gill, J & Johnson P (2006) Research method for managers

Grimm, I, Diamantapolous, A & Smith, G (2002) Customer evaluation of extensions and their
effect on the core brand. European journal marketing Vol. 36 No.11, PP, 1415-1438

Gottfredson, M & Keith, A (2005) Innovation vs. Complexity. What is too much of a good
thing? Harvard business review Vol. 83, No 11 PP 62-71

He H and Li Y (2009) Consumer evaluation of technology based vertical brand extension.

European journal of marketing Vol. 44. No 9/10

Hollense, S (2003) Marketing management: A relationship approach. Harlow financial times/

prentice hall Sage publication limited London

Holtzman .Y (2011) Strategic research and development: It is just more than getting the product
to market. Journal of management development Vol. 30 No.1, PP, 126-133

Hong, J & Brian, S (2010) the effects of consumer prior knowledge and processing strategies on
judgments. Journal of marketing research Vol. 47 No. 2, PP, 301-11

Hoyer W.D & Macinnis D.J (2009) Consumer behavior. Cengage learning , Inc United States of
America 5th edition

Internet Impact on UNT Traditional Newspaper

Kapferer J N (2004) the new strategic brand management: crating and sustaining brand equity
long term. UA Kogan page London & Sterling

Larsson .T (2007) mobile phones to get worlds first newspaper telephone: Follow the news
without paper version. http://www.phonesreview.co.uk/2007/12/13/mobile-phones-to-get-worlds-
first-newspaper-telephone-follow-the-news-without-paper-version/ (accessed March 22, 2011)

Lou .L (2011) Product line design for consumer durables: An integrated marketing and
engineering approach. Journal of marketing research Vol. XLVIII (February) PP 128-139

Miller C. C (2008) How to save local newspaper: Cell phones.

http://bits.blogs.nytimes.com/2008/07/25/how-to-save-local-newspapers-cellphones/ (accessed
March 22, 2011

Mitchell L M, Jolley M. J (2010) Research design explained .Cengage learning, Inc United
States of America

Tauber E. M (1981) Brand franchise extension: new product benefits from existing brands
names. Reprinted from business horizon. March, No. 81237

Thomas J .R (2003) new product development: Managing and forecasting for strategic success.
John Wiley and Sons, Inc Canada

Thompson A. A; Strickland A.J & Gamble J.E (2010) Crafting and executing strategy; the quest
for competitive advantage. McGraw Hill /Irwin New York

Tyag C.L & Kumar A (2004) consumer behavior: Atlantic publisher and distribution. New Delhi

Leonard B. D (1998) Wellsprings of knowledge: Building and sustaining the sources of

innovation. Harvard business school press. United States of America.

Nash Ben(1936) Product development. The American Marketing Society Nov 28

NE (2011) Uppsala Nya Tidning. http://www.ne.se/upsala-nya-tidning (accessed April 27, 2011)

Internet Impact on UNT Traditional Newspaper

Nystrm. H (1985) Product development strategy: An integration of technology and marketing.
Journal of product innovation management Vol. PP, 25-33

Sin P.C (2009) Differentiating high involve product by trivial attributes for product line
extension strategy. European Journal of marketing Vol.44 No 11/13 pp 1557-1575

Schiffman L.G; Kanuk L. L& Hansen .H (2008). Consumer behavior: A European outlook.
Person Education limited UK 2008

Sternvik .J (2008) The Newspapers format change and its consequences. Doctoral dissertation
presented at the department of journalism and mass communication, Gteborg University

Sternvik J, Wadbring .I &Weibull. L (2008) (eds.) Newspaper in a media changing world: A

Swedish trends. The newspaper research program. Department of journalism and mass
communication, University of Gteborg

Szmigin. I (2003) Understanding the consumer. Sage publication London

Ofek. E & Turut. O (2008) To innovate or imitate? Entry strategy and Role of Market Research .
Journal of market research Vol. XLV October pg 575-592

Perry A. W & Wisdom. D (2002) Before the brand. McGraw Hill professional

Peter J. P & Olson. C. Jerry (2008) Consumer behavior and marketing strategy

McGraw Hill/Irwin companies, Inc New York

UNT (2011) Historia. http://www.unt.se/kundservice/historia/ (accessed April 27, 2011)

Vause D.D (2001) Research design in social research. Sage publication Ltd London

Wadbring. I (2003) A paper for its time? Metro and the Swedish newspaper market. Doctoral
dissertation parented at the department of journalism and mass communication, Gteborg
University.

Webb .C. R (1999) Psychology of the consumer and its development: An introduction. Plenum
publisher New York U.S.A

Internet Impact on UNT Traditional Newspaper

Workman. P. J (1993) Marketing limited role in new product development in one computer
based system firm. Journal of marketing research Vol. XXX Nov, PP 405-21

Yim .H. J (2007) Consumer oriented development of ecodesign product. Vulkan Verlag, Essen
Germany

Internet Impact on UNT Traditional Newspaper

Appendix 1

First interview

I Transformation of traditional newspaper

Could you please briefly explain the transformation of your newspaper in the last decade?

II The environment

1 what is the main issues affecting the newspaper and its readerships?

2 Could you describe the impact of the internet on your newspaper?

3 What have been your responses? Please provide examples.

III The socioeconomic environment

1 What are the main socioeconomic environment affecting the newspaper and its practices?

2 Now I would like you to describe in your own words the current socioeconomic environment
of your newspaper.

3 what have been your responses? Please provide examples

Internet Impact on UNT Traditional Newspaper

Second interview

Question 1

Has the internet resulted to your consumer wanting to have internet news?
What effect does this have on your newspaper?
When did you notice this?
How did you respond?
Do you develop alternative newspaper?
What are different between the main newspaper and the alternative newspaper

Question 2

Has the internet resulted to your consumer wanting quick news that is easily available?
What effect does this have on the newspaper?
When did you notice it?
What was your respond?
Do you develop alternative newspaper?
What newspaper are they?
What are different between the main newspaper and the alternative one?

Question 3

Have your consumers become more unwilling to pay for news?

What effect does this have on the newspaper?
When did you notice this?
How did you respond?
Do you develop alternative newspaper?
What newspaper are they?
What are the different between the main newspaper and the alternative one?

Question 4

Have you notice that your consumer want user generated news?

Internet Impact on UNT Traditional Newspaper

 When was that?
How did you respond?
Apart from providing news on the internet and paper, where else do you provide news
under your brand name?
Apart from news provision, what other service or product are you providing under UNT
name?

Internet Impact on UNT Traditional Newspaper